Electric-vehicle (EV) startup Arrival has acquired a $300 million fairness financing line from Westwood Capital and mentioned it seeks to gradual its cash-burn charge, because the British firm appears to start out U.S. van manufacturing in late-2024.
EV firms have been experiencing a money crunch over the previous few months, as excessive prices associated to manufacturing ramp-ups and hovering inflation eat into their reserves.
Arrival expects to attain its goal of quarterly cash-burn charge of $35 million by the second half of 2023, as layoffs and different cost-cut measures take impact. At the tip of 2022, the corporate had about $205 million in money and money equivalents.
The developments come after Arrival’s warning final yr that mentioned it might not have sufficient money to maintain its enterprise going towards the tip of 2023. In January, it named Igor Torgov as its CEO and introduced shedding half of its workers.
Arrival additionally shifted its focus to the United States late final yr, so as to profit from the Inflation Reduction Act, which gives incentives to spur EV manufacturing and adoption.
High demand for electrical vans, in the meantime, has introduced legacy car gamers, together with General Motors, Ford Motor, and upstarts like Rivian Automotive, to the section.
On Monday, Arrival mentioned the extra capital will present the corporate with entry to extra liquidity and that the infusion will fund the enterprise into late-2023.
The capital raised, nevertheless, is not going to present for investments in manufacturing of its van in its Charlotte, North Carolina facility and the corporate mentioned it was kicking off fundraising efforts to fund the U.S. manufacturing plan.
The firm additionally referred to as for a rare assembly of shareholders to vote on a reverse inventory break up proposal to regain compliance with Nasdaq’s itemizing guidelines.
Source: europe.autonews.com